DEEPAKKUMAR NANDLAL RAJYAGURU,SURAT V. INCOME TAX OFFICER, WARD 3(2)(6), SURAT

ITA 758/SRT/2024

AI Insights

This case involves an appeal by Deepakkumar Nandlal Rajyaguru against the order of the National Faceless Appeal Centre (NFAC), Delhi, concerning the assessment year 2010-11. The primary issue was the source of funds used for purchasing immovable property worth Rs. 55,00,000, of which the assessee contributed Rs. 27,50,000. The Assessing Officer had reopened the case to question the source of this investment. The assessee provided detailed evidence showing that the investment was funded through loans from six different parties, which included personal loans from relatives. However, the Assessing Officer and the CIT(A) rejected this evidence without adequate reasoning. The tribunal, upon reviewing the evidence, concluded that the assessee had indeed substantiated the source of the investment, leading to the allowance of the appeal.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 830806 (ITAT-SURAT)
• Duration Of Justice: 1 year(s) 6 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-01-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: misc
• Appeal Filed On: 11-07-2024
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NAMITA PATEL
• Assessee Lawyers: RAJIV CHANDA

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL SURAT SMC BENCH, SURAT BEFORE DR. B.R.R. KUMAR, VICE-PRESIDENT AND MS. SUCHITRA KAMBLE, JUDICIAL MEMBER I.T.A. No. 758/SRT/2024 (Assessment Year: 2010-11) Deepakkumar Nandlal Rajyaguru, 09, Sanskar Park Row House, Near Pragati Nagar Piplot, Surat PAN : AGFPR4373J Vs. The ITO, Ward-3(2)(6), Surat (Appellant) .. (Respondent) Appellant by : Shri Rajiv Chanda, C.A. Respondent by: Ms. Namita Patel, Sr. D.R. Date of Hearing 19.01.2026 Date of Pronouncement 23.01.2026 O R D E R PER SUCHITRA KAMBLE, JUDICIAL MEMBER:- This is an appeal filed against the order dated 13-05-2024 passed by National Faceless Appeal Centre (NFAC), Delhi for assessment year 2010-11. 2. The assessee made investment of Rs. 27,50,000/- i.e. ½ of Rs. 55,00,000/- in immoveable property. The Assessing Officer reopened the case of the assessee on the basis of explaining the source of purchase of immoveable property. 3. We find that the assessee explained the source of investment in immovable property through loan from 6 parties. The assessee has given the details of confirmation, lender’s ITR as well as bank statements before the revenue authorities. At the Printed from counselvise.com ITA No. 758/Srt/2024 Deepakkuamr Nandlal Rajyaguru Vs. ITO Asst. Year : 2010-11 - 2– time of hearing the Ld. AR pointed out that the assessee has made repayment of loan to three parties that are, Madhukanta Rajyaguru, Bhavnaben Rajyaguru, Nareshbhai Rajyaguru in Financial Year 2016-17. The evidence to that extent was reproduced before us. To establish the identity of the lenders the assessee has given all the details but the same was rejected by the CIT(A) and the Assessing Officer without giving any reasons. Thus, the assessee has proved the source of the investment before the revenue authorities which was not considered by the Assessing Officer at the time of the assessment proceedings. Therefore, the addition does not sustain. 3. In the result, the appeal of the assessee is allowed. Order is pronounced in the open Court on 23.01.2026 Sd/- Sd/- (DR. B.R.R. KUMAR) (SUCHITRA KAMBLE) VICE-PRESIDENT JUDICIAL MEMBER Surat; Dated 23/01/2026 ak आदेश की \u0007ितिलिप अ ेिषत/ / / /Copy of the Order forwarded to : 1. अपीलाथ\u0011 / The Appellant 2. \u0007\u0012थ\u0011 / The Respondent. 3. संबंिधत आयकर आयु\u001a / Concerned CIT 4. आयकर आयु\u001a ) ) ) ) अपील ( ( ( ( / The CIT(A)- 5. िवभागीय \u0007ितिनिध , , , , आयकर अपीलीय अिधकरण , , , , /DR,ITAT, Surat, 6. गाड! फाईल / / / / Guard file. आदेशानुसार/ BY ORDER, TRUE COPY सहायक पंजीकार (Asstt. Registrar) आयकर अपीलीय अिधकरण ITAT, Surat Printed from counselvise.com "